- NZD/USD continued scaling higher for third straight session amid weaker USD.
- The USD remained on the defensive amid the latest optimism in the markets.
- A sustained move beyond 0.6090 level might pave the way for additional gains.
The USD maintained its offered tone through the early European session and assisted the NZD/USD pair to hold steady near one-week tops, just above mid-0.6000s.
The pair built on last week’s goodish bounce from the 0.5900 neighbourhood and gained some strong follow-through traction for the third consecutive session on Monday amid the prevalent selling bias surrounding the US dollar.
The latest optimism over hopes for the reopening of economies worldwide and drug trials for treatments of COVID-19 boosted investors’ confidence. This eventually dampened the greenback’s status as the global reserve currency.
The upbeat mood was evident from a positive trading sentiment across the global equity markets, which provided an additional boost to perceived riskier currencies, including the kiwi, and remained supportive of the pair’s uptick.
This coupled with some technical buying above the 0.6020-25 supply zone further collaborated to the pair’s ongoing positive move. A subsequent strength beyond the 0.6090 region might now be seen as a fresh trigger for bullish traders.
There isn’t any major market-moving due for release on Monday. Hence, the broader market risk sentiment, the USD price dynamics and developments surrounding the coronavirus saga will play a key role in influencing the pair’s momentum.
Technical levels to watch